Pursuant to section 204(b) of the
International Emergency Economic Powers Act, 50 U.S.C. 1703(b) (IEEPA),
and section 301 of the National Emergencies Act, 50 U.S.C. 1631, I
hereby report that I have exercised my statutory authority to expand
the scope of an existing national emergency in response to the unusual
and extraordinary threat posed to the foreign policy of the United
States by the Government of Liberia's complicity in the illicit trade
in diamonds from Sierra Leone by the insurgent Revolutionary United
Front of Sierra Leone (RUF) and by the Government of Liberia's other
forms of support for the RUF. I also have exercised my
statutory authority to issue an Executive Order that prohibits the
importation into the United States of all rough diamonds from Liberia,
whether or not such diamonds originated in Liberia. These
actions are mandated in part by United Nations Security Council
Resolution 1343 of March 7, 2001.

The Secretary of the Treasury, in consultation
with the Secretary of State, is authorized to issue regulations in
exercise of my authorities under the IEEPA and the United Nations
Participation Act, 22 U.S.C. 287c, to implement this
prohibition. All Federal agencies are also directed to take
actions within their authority to carry out the provisions of the
Executive Order.

I am enclosing a copy of the Executive Order I
have issued. The Order was effective at 12:01 a.m. eastern
daylight time on May 23, 2001.

I have authorized these measures in
furtherance of Executive Order 13194 of January 18, 2001, and in
response to the Government of Liberia's continuing facilitation of and
participation in the RUF's illicit trade in diamonds from Sierra Leone
and its other forms of support for the RUF. The Government
of Liberia's actions in this regard constitute an unusual and
extraordinary threat to the foreign policy of the United States because
they directly challenge United States foreign policy objectives in the
region and the rule-based international order that is crucial to the
peace and prosperity of the United States.

In Executive Order 13194, President Clinton
responded to the RUF's illicit arms-for-diamonds trade that fuels the
brutal, decade-long civil war in Sierra Leone by declaring a national
emergency and, consistent with United Nations Security Council
Resolution 1306, by prohibiting the importation into the United States
of all rough diamonds from Sierra Leone except for those importa-tions
controlled through the certificate of origin regime of the Government
of Sierra Leone. In a report issued on December 14, 2000,
the United Nations Panel of Experts established pursuant to resolution
1306 found that diamonds represent a major and primary source of income
for the RUF to sustain and advance its military activities; that the
bulk of the RUF diamonds leaves Sierra Leone through Liberia; and that
such illicit trade cannot be conducted without the permission and
involvement of Liberian government officials at the highest
levels. The Panel recommended, among other things, a
complete
embargo on all diamonds from Liberia until Liberia demonstrates
convincingly that it is no longer involved in the trafficking of arms
to, or diamonds from, Sierra Leone.

On March 7, 2001, the Security Council
unanimously adopted resolution 1343 to impose sanctions against the
Government of Liberia. The resolution determined that the
Government of Liberia's active support for the RUF in Sierra Leone and
other armed rebel groups in neighboring countries constitutes a threat
to international peace and security in the region and decided that all
states shall impose an immediate arms embargo on Liberia and also shall
impose travel and diamond bans on Liberia on May 7, 2001, unless the
Council determined before that date that the Government of Liberia had
ceased its support for the RUF and for other armed rebel groups and, in
particular, had taken a number of concrete steps identified in the
resolution. In furtherance of this resolution, the
Secretaries of State, Commerce, and Defense have taken steps, under
their respective authorities, to implement the arms embargo.

With regard to the travel ban and diamond
embargo, the Government of Liberia has failed, notwithstanding the
two-month implementation period granted by resolution 1343, to honor
its commitments to cease its support for the RUF and other armed rebel
groups. As a result, the Security Council did not determine
that Liberia has complied with the demands of the Council.

In Proclamation 7359 of October 10, 2000,
President Clinton suspended the entry as immigrants and nonimmigrants
of persons who plan, engage in, or benefit from activities that support
the RUF or that otherwise impede the peace process in Sierra
Leone. The application of that Proclamation implements the
travel ban imposed by resolution 1343.

Finally, for the reasons discussed above and
in the enclosed Executive Order, I also have found that the Government
of Liberia's continuing facilitation of and participation in the RUF's
illicit trade in diamonds from Sierra Leone and its other forms of
support for the RUF contribute to the unusual and extraordinary threat
to the foreign policy of the United States described in Executive Order
13194 with respect to which the President declared a national
emergency. In order to deal with that threat, and consistent
with resolution 1343 and this finding, I have taken action to prohibit
the importation into the United States of all rough diamonds from
Liberia, whether or not such diamonds originated there, in order to
contribute to the international effort to bring a prompt end to the
illicit arms-for-diamonds trade by which the RUF perpetuates the tragic
conflict in Sierra Leone. This action, as well as those
discussed above, also expresses our outrage at the Government of
Liberia's ongoing contribution to human suffering in Sierra Leone and
other neighboring countries, as well as its continuing failure to abide
by international norms and the rule of law.